Reuters reported that Democratic Republic of Congo could exceed a forecast 6.5% economic growth in 2011 but must do more to increase transparency in the mining sector.

The IMF said that Congo which has large deposits of copper, cobalt and gold is gearing up for general elections set for November 28th 2011 assuming it surmounts major logistical and funding challenges to ensure the polls go ahead on time.

The vote is seen as crucial for economic and political stability and will be the second since 5 year war ended in 2003, leaving millions dead. Despite the pressures of funding polls and higher than expected inflation, the country has maintained financial discipline.

Mr Robert York the IMF's chief of mission to Congo said that "Despite the difficult global economic environment, macroeconomic performance remains strong and economic growth during 2011 could be higher than the 6.5% previously projected."

Mr York said that the announcement came following a quarterly review linked to an existing 3 year USD 560 million credit arrangement with the IMF. Annualized inflation stands at 19.91% higher than the 13% target set by the central bank. Economic activity is being supported by high global prices for mineral exports but more should be done to raise domestic revenue to tackle poverty. Making progress in enhancing governance and transparency in extractive industries is essential.

Congo's government earlier this year sold mining assets far below their value in an undisclosed deal with cash from the sales used to fund the elections. The government said that unspecified mining deals with China and India would help pay for the presidential and parliamentary elections whose cost is put at USD 700 million about 12% of the 2011 budget including donor financing.

(Sourced from Reuters)